SBC News Voice of the Sports Betting Industry
Gambling.com has released financial results for the first quarter of 2025, displaying increases in every sector.
Most significantly, the affiliate marketing group’s total revenue rose 39% year-over-year to $40.6m (Q1 2024: $29.2m). This drove a 78% increase in adjusted net income to $16.5m, which per share rose 92% to $0.46.
Adjusted EBITDA increased 56% to a record $15.9m, reflecting an Adjusted EBITDA margin of 39% as compared to Adjusted EBITDA of $10.2m and an Adjusted EBITDA margin of 35% in the prior-year period.
Meanwhile, as Gambling.com delivered over 138,000 NDCs to clients, revenue from marketing services went up 13% year over year to $30.7m – a 29% increase over the prior-year period.
Charles Gillespie, CEO and Co-Founder of Gambling.com Group, said: “We entered 2025 with our marketing business at all-time highs and with an expanded suite of sports data services having closed the acquisition of OddsJam and OpticOdds on 1 January.
“Since the closing, we have made substantial progress on integrating these offerings into our overall business and the products are performing strongly as expected.”
Revenue from sports data services increased by 405% to $9.9m, which the company mainly attributed to OddsJam and OpticOdds, as previously mentioned, following the acquisition on 1 January. Recurring subscription revenue represented 24% of total 2025 first quarter revenue.
“With an enhanced sports data services platform, we now have meaningful recurring subscription revenue, which we expect to account for well over 20% of our 2025 revenue, bringing increased revenue visibility and a complimentary, high margin and high growth source of profit and cash flow,” Gillespie added.
As alluded to by Gillespie, the increase in revenue in turn drove a jump in gross profit. This figure increased 42% to $38.4m while expenditure remained steady with cost of sales in line with the prior-year period.
However, this did mean that total operating expenses increased 49% to $28.4m, primarily as a result of increased people costs and higher amortisation related to the acquisition of Freebets.com from XLMedia in April last year.
This was brokered for a value between $37.5m and $42.5m, with $20m of that being paid immediately after closing. Meanwhile, $10m was then paid six months from the acquisition’s date.
Elias Mark, Chief Financial Officer of Gambling.com Group, added on the latest report: “Our first quarter results include record quarterly revenue of $40.6m and Adjusted EBITDA of $15.9m, reflecting year-over-year growth of 39% and 56%, respectively.
“With the solid start to the year, we remain confident in our full year outlook with the midpoints of our guidance for revenue of $172m and $68m in Adjusted EBITDA, representing year on year growth of 35% and 40%, respectively.”
Finally, operating cash flow grew 30% to $11.4m. Free cash flow increased 25% to $10.3m, reflecting growth in Adjusted EBITDA partly offset by working capital movements.
The group concluded that it expects 2025 to be another year of record revenue, moving towards its goal of generating $100m in annual Adjusted EBITDA.
